Hong Kong brokers line up for SFC approval ahead of new virtual asset trading legislation

Financial companies suppliers in Hong Kong are already taking the primary steps to offer companies to retail buyers, based on native stories. Brokers and fund managers within the area have reportedly requested for recommendation on licensing necessities ahead of new legislation.

Lawmakers in Hong Kong handed an modification to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) in December 2022, which aligns with the area’s current stance on broadening the likelihood for crypto trading.

The modification introduces a new licensing scheme for virtual asset service suppliers, which can permit retail buyers the flexibility to commerce in virtual belongings. Currently, virtual asset trading is restricted to skilled buyers or merchants with proof of not less than $1 million in bankable belongings.

Victory Securities and Interactive Brokers have been the primary two brokers in Hong Kong with SFC to commerce virtual belongings for their skilled shoppers.

According to Robert Lui, the digital asset chief at Deloitte Hong Kong, retail buyers will most definitely be capable to commerce virtual belongings with a big market capitalization and liquidity.

Currently Hong Kong-based brokers don’t want particular licence to service shoppers trading Hong Kong-listed exchange-traded fund futures primarily based on Bitcoin (BTC) and Ether (ETH). Though, these which can present virtual asset trading will want further SFC approval. 

The new licensing was initially scheduled for Mar.1 of this yr, nonetheless the date was then pushed till Jun. 1 so as to give virtual asset service suppliers extra time to precisely put together. 

Related: Crypto makes historical past in 2022: Five situations of governments embracing digital belongings

This comes after the SFC just lately appointed Julia Leung as its new chief govt. Leung began her time period on Jan. 1 and is about to be in workplace for the following three years. She has beforehand spoken out about tightening native crypto rules. 

An govt from the Central Bank of Hong Kong additionally just lately stated it was trying into investor safety rules.